Cabo Verde – 2025 State Budget Law

II - Special Regime for Micro and Small-Sized Companies (Regime Jurídico Especial das Micro e Pequenas Empresas, REMPE)

Excluded from the regime, with effect from the financial year following the respective verification, are micro and small enterprises that exceed, by more than 30%, in any financial year, the turnover stipulated by law, in accordance with paragraph 5 of article 4 of the REMPE regime.

The 25% reduction in turnover for the application of the TEU rate for micro and small enterprises that do not have an ongoing tax infringement process, previously stipulated in paragraph 9 of article 41 of the REMPE regime, is revoked.

Deeds of amendment to the articles of association and closure are now exempt from payment of stamp tax, fees, as well as any emoluments and other legal charges, under the terms of paragraph 1 of article 44 of the REMPE Regime.

Taxpayers classified under the REMPE regime must have a visible device through which fiscally relevant documents are issued.

III - Withholding tax on real estate income 

When the entities required to do so fail to withhold tax, the beneficiaries of real estate income obtained in the national territory can choose to file the respective statement and pay the final withholding tax due.

IV - Indirect Taxes

Carbon Tax: a carbon tax of CVE 550 (approx. € 5) is introduced, which applies to the issuance of commercial passenger air transport tickets at airports and aerodromes in Cabo Verde, as well as to the docking of passenger ships at Cabo Verde's port terminals.

There are some exceptions to its application, namely for air and maritime transport between the islands of Cabo Verde.

Excise Duties

• Specific tax on sugary beverages drinks: Increase in the specific tax on imported sugary drinks.
  

• Specific tax on sweet products: Increase in the specific tax on imports of sweet products.

V - Tax Incentives

Cumulating with the existing tax incentives, the following have been introduced:

• Health Sector: there is an exemption from VAT for imports of goods intended for the health sector that are already exempt from custom duties under the Tax Benefits Code.

• Tourism: exemptions both from VAT and custom duties on imports of equipment necessary for implementing a program aimed at promoting sustainability in the tourism value chain, to be launched in 2025.
  

• Security printing project (“Projeto de Gráfica de Segurança”): the materials imported by the National Press of Cabo Verde (Imprensa Nacional de Cabo Verde, INCV) for a national sovereignty project are exempt from VAT and custom duties.

VI - Legal Framework for Non-Customs Tax Offences

A variable fine ranging from  CVE 500,000 to CVE 2,500,000 (approx. € 4,500 to € 22,600) is introduced for the following offences:

• Commercialization, transfer or provision of accounting and invoicing software via electronic means, which have not been previously certified by the Tax Authorities.

• Failure to notify the Tax Authorities within the legally established deadlines of any changes or updates to previously certified software.

• Use of software not certified by the Tax Authorities for the preparation of accounting records and the processing of electronic invoices and other tax-relevant electronic documents.

A variable fine ranging from CVE 30,000 to CVE 1,000,000 (approx. € 270 to € 9,000) is introduced for the failure to issue invoices and tax-fiscally relevant documents, or for issuing them outside the after the established legal deadlines.